City Council Staff Report Page 1 of 3 June 23, 2026
Staff Report
Agenda Item No. 4.10
DATE: June 23, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to enter into a Second Amendment to the Consulting Services Agreement for Preparation of the Economic Development Strategic Plan with Strategic Economics, Inc., to Increase the Agreement Amount by $10,740 for a Total Not-to-Exceed Amount of $141,878.40
EXECUTIVE SUMMARY
Staff recommends the City Council adopt the attached Resolution authorizing the City Manager to execute a second amendment to the agreement between the City and Strategic Economics, Inc. (C25ECD0024) to increase the agreement amount by $10,740 for a total not-to-exceed amount of $141,878.40 to continue work on the Economic Development Strategic Plan (“Plan”).
STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with:
Goal 1, Strategy 1: Establish a comprehensive fiscal stability and sustainability plan to address the General Fund’s long-term structural deficit; and Goal C, Strategy 6: Update the Economic Development Strategic Plan to meet the City’s financial goals and build regional partnerships.
BACKGROUND
Strategic Economics, Inc. (the “Consultant”) was retained to assist staff and the City Council in updating the Plan, a policy document intended to guide the City’s economic development efforts over the next five years. On June 11, 2024, the City entered into a Consulting Services Agreement with the Consultant for the Plan update in the amount of $131,138.40 (Resolution No. 6308-24).
On August 13, 2024, the City Council approved the First Amendment to the Consulting Services Agreement, authorizing the Consultant to examine confidential sales and use tax records maintained by the California Department of Tax and Fee Administration about Agenda Item No. 4.10
City Council Staff Report Page 2 of 3 June 23, 2026
sales and use taxes collected on behalf of the City (Resolution No. 6349-24).
The draft Plan was reviewed by the Economic Development Advisory Team on March 19, 2026, and by the City Council in a Study Session on June 9, 2026. The final draft of the Plan is anticipated to be presented to the City Council for consideration and adoption in July 2026.
DISCUSSION
Over the past year, the Consultant has completed substantial work on the Plan, including:
• Preparing a demographic profile of Union City’s population and workforce; • Analyzing business sector and employment trends;
• Assessing the City’s supply of non-residential land;
• Conducting stakeholder outreach and engagement activities; • Evaluating the fiscal contributions of non-residential land uses to the City’s budget;
• Identifying opportunity sites for reinvestment and redevelopment; and • Preparing and presenting an Economic Assessment Key Findings Report.
While the Plan is nearing completion, further refinement and incorporation of any additional feedback from the City Council are necessary before finalization and adoption.
In addition, the scope provides for the Consultant to attend the City Council meeting where the Plan will be adopted. Accordingly, the proposed Second Amendment to the Consulting Services Agreement would increase the contract amount by $10,740, bringing the total not-to-exceed amount to $141,878.40.
FISCAL IMPACT
The Economic Development budget has adequate funds included in the FY 2025-2026 Budget under “Professional Consulting” (Account No. 11041022 54110) to cover the increase.
RECOMMENDATION
Staff recommends the City Council adopt the attached Resolution authorizing the City Manager to execute a second amendment to the agreement with Strategic Economics, Inc. (C25ECD0024), in a form approved by the City Attorney, to increase the agreement amount by $10,740 for a total not-to-exceed agreement amount of $141,878.40 to continue work on the Economic Development Strategic Plan.
Prepared by: Gloria Ortega, Economic Development Manager Submitted by: Carmela Campbell, Economic and Community Development Director Agenda Item No. 4.10
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Attachments
1. Draft Resolution
2. Exhibit A - Scope of Work